Financial Data and Key Metrics Changes - For 2025, adjusted earnings per share (EPS) was $6.98, representing an 8.7% increase year-over-year, primarily due to higher revenue and adjusted operating income, including the impact of the Vascular Intervention acquisition [16][17] - Adjusted gross margin for 2025 was 63.7%, a decrease of 200 basis points year-over-year, attributed to tariffs, the addition of the Vascular Intervention acquisition, and increased logistics costs [15][16] - Adjusted operating margin for 2025 was 22.7%, reflecting a 230 basis point decrease due to gross margin pressure and higher operating expenses [16] Business Line Data and Key Metrics Changes - Vascular revenue increased 2.4% year-over-year to $472.7 million, driven by growth in Central Access, hemostatic, and atomization products [14] - Interventional revenue was $427.5 million, an increase of 8.1%, supported by a broad Interventional portfolio [14] - Surgical revenue was $219.3 million, reflecting a 3.2% increase, impacted by volume-based procurement in China [14] Market Data and Key Metrics Changes - Continuing operations delivered 4.7% pro forma adjusted constant currency revenue growth in the second half of 2025, establishing a solid foundation for future mid-single-digit revenue growth [22][28] - Pro forma adjusted constant currency revenue growth guidance for 2026 is expected to be in the range of 4.5%-5.5% [22] Company Strategy and Development Direction - The company is undergoing a transformation to optimize its portfolio, focusing on becoming a more streamlined medical technologies leader [27] - Strategic divestitures of the Acute Care, Interventional Urology, and OEM businesses are expected to close in the second half of 2026, with net proceeds of approximately $1.8 billion to be used for share repurchases and debt reduction [7][20][30] - R&D investment for RemainCo is expected to represent approximately 8% of sales, up from about 5% historically, indicating a focus on product innovation [8][71] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving adjusted EPS guidance for 2026 in the range of $6.25-$6.55, despite the impact of stranded costs related to divestitures [9][21] - The company anticipates significant improvements in margins and adjusted EPS in 2027 and beyond, driven by capital deployment actions and cost-saving initiatives [30][50] Other Important Information - The company is actively conducting a CEO search following the transition of leadership, focusing on candidates with experience in high-growth organizations [5][51] - A restructuring plan has been approved to mitigate approximately $50 million in stranded costs, aimed at streamlining operations and improving long-term cost structure [24][30] Q&A Session Summary Question: Use of proceeds from divestitures - The company plans to allocate $1 billion for share repurchases and approximately $800 million for debt repayment, primarily targeting the deferred draw revolver from the BIOTRONIK acquisition [33] Question: Restructuring savings impact on EPS guidance - Some restructuring savings are included in the EPS guidance for 2026, with additional savings expected post-2026 [34] Question: Confidence in revenue growth for 2026 - Confidence in revenue growth is based on anticipated sales synergies and easier comparisons in the second half of 2026, as the impact of volume-based procurement is expected to lessen [81]